What Is the Volume Of a Cryptocurrency?
The volume of a cryptocurrency shows the awareness of cryptocurrency and how often it is traded. The volume can be calculated for the last 24 hours, daily, weekly, monthly, yearly, or even more. Investors can benefit when comparing the previous and the current volume of a cryptocurrency in order to determine the price of the evaluated coin, whether there is an opportunity for purchase or not. The large volume of transactions leads to an increase in the number of investors.
Many factors affect the investment evaluation of any cryptocurrency. One of the most valuable factors is the volume of the relevant cryptocurency. So what is the correlation between Bitcoin and volume? Briefly, we evaluated for you some possible changes when the crypto volume increases or decreases.
What Happens If the Cryptocurrency Volume Drops?
A decrease in the volume causes the market to be more easily manipulated. In contrast, an increase in the volume leads to an escalation in investor confidence and the number of investors.
What If the Cryptocurrency Volume Increases?
High trading volume is a positive criterion for investors. At the same time, it is easier to predict returns based on the volume of transactions, which makes it more attractive to investors. The trading volume may increase in both upward and downward mobility. In a bullish market, where an upside trend dominates, prices will form in a favorable environment in the future; there is a strong relationship between trading volume and prices. But usually, in a bearish market, where the market has a pessimistic outlook and prices are in a downside trend for a long time, this relationship becomes weaker.
Bitcoin Transaction Volume
The pioneer of cryptocurrencies, Bitcoin was first introduced in 2009, and alternatives for cryptocurrencies came into existence in 2011. Especially in recent years, there has been a severe demand for cryptocurrencies. However, Bitcoin stays as a pioneer in the cryptocurrency market due to being the first. For example, if the Bitcoin transaction volume (daily) is 30,000 BTC, it means that 30,000 BTC changes hands between users in the last 24 hours. Bitcoin's trading volume over the past 24 hours is $259,553,024.93, which is 18,690.75 BTC. High daily trading volume for a coin indicates that cryptocurrency investors have already adopted and used this coin.
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